Kostin: the situation in the banking sector under control

Kostin: the situation in the banking sector under control

MANILA, November 18. The crisis in the banking sector no, the situation is completely under control. This opinion was expressed to journalists by the head of VTB Andrey Kostin on the sidelines of the APEC summit.

“I always yell that there is no crisis. There are many difficulties. Someone has a difficulty with capital, there is the difficulty, of course, at a profit, there is a high refinancing rate, which hurts the banks. But the overall situation is totally under control”, – he said.

Kostin added that the number of banks will be reduced. “I always predicted (reduce the number of banks). Expectations simple. See how much a year the Central Bank takes away licenses. That’s about will be the approximate number in a year. It varies – 60, 70, 80 licenses per year,” he added.

Earlier, the head of Sberbank German Gref said that Russia has large-scale banking crisis. According to him, next year will be no less difficult for the banking system of the Russian Federation.

About key Central Bank rate

Kostin allows the reduction of the key rate of the Bank of Russia until the end of the year.

“I think, or half a percent, you know, because at the end of the year is always a surge of money into the economy, maybe the pressure for inflation (to be), so the Central Bank may refrain from taking any action until early next year,” he said.

Kostin believes that at the beginning of next year, the rate reduction will. “At the beginning of (next) year, I think. This year I don’t know, a maximum of one-half, and I’m not sure”, he added.

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© Vladimir Smirnov/TASS

The Bank of Russia kept its key rate unchanged at 11%, but has promised soon to reduce it